In a year,if foreigners invest ________ in Australia than Australians invest abroad,the capital and financial account balance is ________.

Question

Quizplus · Accepted Answer

If foreigners invest more in Australia than Australians invest abroad, this means that there is a net inflow of capital into Australia. Therefore, the capital and financial account balance will be positive. Option A and D are the opposite scenario, and option B suggests that the two amounts are equal, which is not implied in the question. Option E suggests that there is a net outflow of capital from Australia, which contradicts the premise provided. Hence, C is the best choice.

In a Year,if Foreigners Invest ________ in Australia Than Australians